SHALE Oil & Gas Business Magazine
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WICHITA FALLS—Oil and gas producers in Texas kicked off the New Year with a bang, propelling the Texas Petro Index upward for the 14th straight month by continuing to increase production in response to higher wellhead prices. At 192.7 in January, the TPI was 25 percent higher than in January 2017 when the TPI stood at 153.7 and up more than 30 percent than in November 2016 when the TPI stood at 148.2.
“The statewide upstream oil and gas economy remains in a state of expansion with generally favorable pricing, a slowly rising rig count, growing industry employment, and record crude oil production,” said Ingham, the economist who created the TPI and updates it monthly.
TPI estimates in January indicated wellhead prices were higher for both crude oil and natural gas, boosting upstream activity across the board:
But Ingham said most of the impetus for the continuing upstream oil and gas expansion in Texas came from crude oil.
“According to TPI estimates, crude oil production in Texas in January totaled 119.4 million barrels, which would surpass all prior volumes in January, including the early 1970s when the statewide annual production record was set.
“In addition, the posted price for crude oil in Texas in January jumped more than $6 per barrel ($/bbl) compared to December to average more than $60/bbl for the first time since November 2014.”
A composite index based upon a comprehensive group of upstream economic indicators, the Texas Petro Index increased for the 14th consecutive month in January to 192.7, up from 188.9 in December and 153.7 in January 2017. Before the most recent economic downturn, the TPI peaked at a record 313.5 in November 2014, which marked the zenith of an economic expansion that began in December 2009, when the TPI stood at 187.4.
TPI Highlights in January:
ABOUT the TPI: The Texas Petro Index is a service of the Texas Alliance of Energy Producers, the nation’s largest state association of independent oil and gas producers.
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